Supermarkets cut petrol prices

A Petrol price war has broken out as supermarkets across Britain cut the cost of fuel.

First to drop its prices was the supermarket chain Morrisons, which knocked 2p off unleaded petrol bringing it down to 79.9p a litre.

Hours later Sainsbury's announced that it would match that price by ordering a 4p reduction at its pumps.

Asda, meanwhile, revealed that some of its stations were already selling unleaded for just 78.9p per litre and would match its rivals elsewhere.

The moves come just days ahead of a nationwide boycott of filling stations, prompted by growing anger at petrol prices.

It comes as the Conservatives demand a cut in petrol duty.

Experts predict the downward trend will be copied by the major oil companies and that prices have further still to fall. 'I think we will see cuts coming in the next few days,' said Ray Holloway, director of the Petrol Retailers' Association.

The reductions come in the wake of sustained pressure from Britons fed up with paying more for petrol than anywhere else in Europe.

Pump prices have gone up by 44% since Labour came to power three years ago with more than three-quarters of that increase in taxes.

Tesco and Safeway said they also have a policy of matching their rivals. Pressure will rise further next week as a nationwide boycott of filling stations swings into action.